1 00:00:00,000 --> 00:00:04,220 Welcome to our the town of Salem and Merrimack County Savings Bank. 2 00:15:00,000 --> 00:15:11,840 Dispersed funds appropriately that way. Ken's going to talk a little bit about partnering with your builder, and what his team does with the building community. Thank you, Gary. 3 00:15:13,420 --> 00:15:27,720 So one of the unique things with Merrimack County Savings Bank. As Gary was saying, our team's all in house. I've got a team of 11 employees that take you through this process. Gary will have the loan officer. He'll stop the application. Then you'll work with a processor, 4 00:15:27,720 --> 00:15:32,780 a construction loan specialist. That process is going to help you take that shoebox full 5 00:15:32,780 --> 00:15:37,700 of receipts, the permits, all this things, get you to closing. Then once you get to closing, 6 00:15:37,860 --> 00:15:41,440 you'll be signed a construction loan coordinator. That person, you'll be assigned that one person. 7 00:15:41,860 --> 00:15:43,820 They'll be a main point of contact throughout this. 8 00:15:44,620 --> 00:15:48,540 So in the documentation phase, you've started with your loan officer, your processor comes 9 00:15:48,540 --> 00:15:53,720 in and you're working with a builder. She'll scan our list and see if your builder's already 10 00:15:53,720 --> 00:15:57,700 been approved. We're working with them already. If so, you go right to the next level. If not, 11 00:15:58,820 --> 00:16:03,040 he'll fill out a simple little questionnaire and then I'll meet with him at a site he's 12 00:16:03,040 --> 00:16:07,960 got going or your site there just to vet him somewhat to make sure he understands the process 13 00:16:07,960 --> 00:16:13,720 to relieve frustration going forward because usually this is a 8-12-month process. So we want to 14 00:16:13,720 --> 00:16:18,400 make sure if we can relieve frustration early on by answering simple questions that helps them out 15 00:16:18,400 --> 00:16:24,880 tremendously. We do have a lot of self-GCs, not many institutions, will do self-GCs, but 16 00:16:24,880 --> 00:16:30,160 because I have the team and we're hands on will allow a qualified individual to do their 17 00:16:30,160 --> 00:16:35,640 own project and act as their own general contractor. If that's the case, then I meet with you 18 00:16:35,640 --> 00:16:40,280 out on your site and we go over the process with you as well. Basically, we're establishing 19 00:16:40,280 --> 00:16:44,440 that relationship, so if something goes crazy during the 12 months, you've got somebody 20 00:16:44,440 --> 00:16:48,800 you Matt and you can pick up the phone and call them versus the guy I emailed multiple 21 00:16:48,800 --> 00:16:56,080 times. It's much more personnel for me. So, as we're going through this, whether it's 22 00:16:56,080 --> 00:17:01,340 a self-GC and Gary kind of went over the two differences with the loan fees, with the 23 00:17:01,340 --> 00:17:14,420 self-GCs, we are paying the subcontractors and the vendors all directly, getting W9s from 24 00:17:14,420 --> 00:17:16,920 us for you as well, even if you've got the contractor. 25 00:17:18,640 --> 00:17:20,240 And just something doesn't seem right. 26 00:17:20,440 --> 00:17:21,680 We have you reach out to us. 27 00:17:21,800 --> 00:17:27,720 We've got, with the 11 people, everybody's got a construction-based background, so we've 28 00:17:27,720 --> 00:17:30,420 got hundreds of years of experience going through that process. 29 00:17:33,010 --> 00:17:34,650 The budget's fairly simple. 30 00:17:35,550 --> 00:17:41,290 It's a 29-line budget, but there'll be multiple drop-downs where you can expand it and open 31 00:17:41,290 --> 00:17:41,690 it up. 32 00:17:41,690 --> 00:17:43,970 If it doesn't apply to you, we're just going to hide it. 33 00:17:43,970 --> 00:17:48,770 If we have a terminology that's different than your builders, we'll just customize it to the terminology. 34 00:17:49,550 --> 00:18:05,490 And the biggest thing, what I love about the budget is, if you're at the beginning of the project just get an electronic version, I'll be sitting in bed at night, plopping numbers in and just trying to get a grasp of what's going to cost me, it's not filling out numbers and see if it's feasible for you. 35 00:18:09,720 --> 00:18:15,560 As I've got two steps in this at the beginning is I'm approving the builder, and then I'm approving the project. 36 00:18:15,720 --> 00:18:23,620 When I'm looking at the project, we're looking at plans, we're looking at specs, we're looking at the appraisal that it all matches up. 37 00:18:24,020 --> 00:18:29,420 The biggest thing is the budget that is adequately enough money to get through this project. 38 00:18:29,620 --> 00:18:36,800 So even if you're going to do your own painting, we'd have a quote from a painting contractor just in case you got busy at work and 39 00:18:36,800 --> 00:18:39,240 you needed to have a paint to do it or something like that. 40 00:18:39,680 --> 00:18:43,540 So my biggest concern when I'm looking at this is I have enough money to finish this 41 00:18:43,540 --> 00:18:44,040 project. 42 00:18:44,680 --> 00:18:48,260 But the process is the biggest thing is communication. 43 00:18:48,660 --> 00:18:54,240 Communication is always ongoing, keeping everybody abreast, going through, and as we move through, 44 00:18:54,520 --> 00:18:56,440 there could be some things that got missed in the beginning. 45 00:18:56,760 --> 00:18:58,340 We didn't realize it was a subdivision. 46 00:18:58,380 --> 00:18:58,980 We need a plan. 47 00:18:59,140 --> 00:19:01,220 We're looking for cover dances or any of that stuff. 48 00:19:01,860 --> 00:19:04,940 And it's communicating with the town for the permitting aspects. 49 00:19:04,940 --> 00:19:08,080 So multiple things that happen at the same time. 50 00:19:08,560 --> 00:19:12,180 Gary's team's looking at the financing, moving that way, getting the appraisal. 51 00:19:12,420 --> 00:19:17,400 My team's looking at the plans, bags, budgets, and approving the project on that side. 52 00:19:21,180 --> 00:19:21,500 Back to you. 53 00:19:21,740 --> 00:19:22,240 Oh, back to me. 54 00:19:23,820 --> 00:19:24,940 You can go to the next one. 55 00:19:25,400 --> 00:19:34,400 So once your project is completed, so what we'll do is you'll close your loan, and sort of at that point in time, 56 00:19:34,400 --> 00:19:39,700 You get moved over to your project coordinator, your construction loan coordinator. 57 00:19:40,180 --> 00:19:47,200 And at that time, they're responsible for dispersing funds out to your contractor as necessary. 58 00:19:48,560 --> 00:20:02,480 So, you know, as I said, we always try to impress upon people to be active in your project, be at your project, and keep a close watch on the construction. 59 00:20:02,480 --> 00:20:07,740 We're there to make sure that work is being completed. 60 00:20:08,340 --> 00:20:13,720 We're not there to look at the quality and be inspectors. 61 00:20:13,940 --> 00:20:16,260 We're just saying the work has been completed. 62 00:20:17,400 --> 00:20:21,420 And at that point, you'll sign a lean waiver. 63 00:20:21,680 --> 00:20:23,200 The contractable sign, a lean waiver. 64 00:20:23,540 --> 00:20:25,780 At that point in time, you've told us as the bank. 65 00:20:26,120 --> 00:20:29,660 We are okay with us dispersing funds to those parties. 66 00:20:29,660 --> 00:20:34,660 So, at that point in time, if you have any questions right around then, that's when you 67 00:20:34,660 --> 00:20:37,240 should speak up and say, all right, hey, we want to do this and that. 68 00:20:37,460 --> 00:20:40,320 And that's where you have that conversation. 69 00:20:40,640 --> 00:20:44,280 Because once those lean waivers have gone out and we've decided to pay everyone, it's really 70 00:20:44,280 --> 00:20:46,100 hard to put that genie back in the bottle, right? 71 00:20:46,760 --> 00:20:51,660 That original budget we worked at before closing, that everybody agreed on that moves on to a 72 00:20:51,660 --> 00:20:52,940 spreadsheet after closing. 73 00:20:53,120 --> 00:20:56,920 When you were your builder's looking for funds, you're just going to put in the lines which 74 00:20:56,920 --> 00:20:59,600 which line you want the funds to come from, the inspection happens. 75 00:20:59,820 --> 00:21:02,280 So this is inspection one, inspection two, inspection three. 76 00:21:02,780 --> 00:21:04,860 Balances are all the hits, just a simple spreadsheet. 77 00:21:05,200 --> 00:21:09,480 But you're in control at any time, be able to see how much you have in the line, 78 00:21:09,720 --> 00:21:11,400 and what your balances are on that line. 79 00:21:13,390 --> 00:21:16,910 Can you want to talk a little bit about inspections and dispersions? 80 00:21:17,170 --> 00:21:20,490 Yep, so the process for the inspection is when you're looking for an inspection, 81 00:21:20,710 --> 00:21:22,330 we pay for work that's been completed. 82 00:21:23,190 --> 00:21:25,630 We don't like to do deposits in advance, 83 00:21:25,630 --> 00:21:30,710 And unless it was special audit stuff, we hate to give a foundation guy $20,000 84 00:21:30,710 --> 00:21:33,770 two months before he's coming because there's a concern he's not coming. 85 00:21:34,630 --> 00:21:36,350 And that's our borrowers fund. 86 00:21:36,550 --> 00:21:39,850 So we have conversations with the contractors. 87 00:21:40,090 --> 00:21:42,490 The day he shows up, I have no problem getting him some funds. 88 00:21:42,930 --> 00:21:45,790 So when it comes time for disbursement, the contractor yourself. 89 00:21:45,810 --> 00:21:49,470 You fill out the budget, couple of lean waivers, submit the documentation. 90 00:21:49,470 --> 00:21:52,250 If you did it over the weekend, my team will book it on Monday. 91 00:21:52,290 --> 00:21:54,690 You'll see somebody out at the site Tuesday Wednesday. 92 00:21:55,370 --> 00:21:58,090 And a lot of contractors have accounts with us. 93 00:21:58,150 --> 00:22:00,050 We electronically put it into their account. 94 00:22:00,190 --> 00:22:01,850 They swing by a branch, pick up a check. 95 00:22:02,490 --> 00:22:04,670 We still have people get them in the mail, too, 96 00:22:04,790 --> 00:22:08,430 which is crazy, but so the process is there. 97 00:22:08,730 --> 00:22:11,130 And my team, we meet every morning at 730, 98 00:22:11,130 --> 00:22:12,450 talk about what happened yesterday, 99 00:22:12,650 --> 00:22:13,530 what's happening today. 100 00:22:13,710 --> 00:22:15,610 And if there's something odd that pops up, 101 00:22:15,630 --> 00:22:19,870 we focus on that conversation and assist the customer 102 00:22:19,870 --> 00:22:22,350 with what was going on with them 103 00:22:22,350 --> 00:22:26,030 and navigate them through a roadblock they may have. 104 00:22:27,650 --> 00:22:29,810 In our projects is eight inspections. 105 00:22:30,070 --> 00:22:33,790 If you use the eight inspections and you have one per month, so unlimited inspections. 106 00:22:38,740 --> 00:22:39,640 Change orders. 107 00:22:40,580 --> 00:22:45,140 If there is a change order, we have the general contract to stop right up to change order. 108 00:22:45,460 --> 00:22:47,800 It's an extra $20,000 for the kitchen. 109 00:22:48,320 --> 00:22:50,380 The customer would bring those funds in. 110 00:22:50,380 --> 00:22:55,180 Again, we set them aside, tell the contractor, we've got the funds go ahead, keep working, 111 00:22:55,900 --> 00:22:57,440 and then we'll disperse those out. 112 00:22:57,680 --> 00:23:03,120 We really just are having a conversation that this is extra, clear communication. 113 00:23:04,500 --> 00:23:09,860 This is extra, we have the funds keep working versus a lot of general contractors in the past, 114 00:23:09,860 --> 00:23:15,100 used to just do all the change orders at the end, and it was $5,000, but he said it four times, 115 00:23:15,520 --> 00:23:16,460 that's $20,000. 116 00:23:16,460 --> 00:23:43,060 So again, it's just keeping the communication there and going down that through at the very end of the project, we'll have the person that did the appraisal at the beginning come out and do an appraisal, and all they're doing is just verifying this is exactly what I thought it was going to be and they complete a completion report with us in the meantime throughout construction, we'll have our engineering firm do a plot plan, make sure you're on the right lot, meet setbacks and things like that. 117 00:23:43,060 --> 00:23:49,920 But a lot of the communities are looking for those as well, too, so we have an engineering firm that will send out for that information. 118 00:23:52,510 --> 00:24:04,210 Yeah, just also on the end of your project, once you've completed, and at the bank, we have a six month rate flow down. 119 00:24:04,430 --> 00:24:12,970 So if rates have improved over the build, once your project is complete and signed off on, without refinancing, 120 00:24:12,970 --> 00:24:19,510 we'll just lower your rate to whatever the lower to whatever our portfolio rate is at that time. 121 00:24:19,810 --> 00:24:24,970 So we know, as I said, rates change and go up and down as you go through this. 122 00:24:25,270 --> 00:24:33,270 In the beginning, you sort of have your intro and it's your and it is your you know that 123 00:24:33,270 --> 00:24:38,590 that that rate can never go up. But with the flow down, it is able to go down. It's no cost to you 124 00:24:39,450 --> 00:24:41,390 And again, there's no real paperwork to do. 125 00:24:41,510 --> 00:24:42,830 You just say, hey, my project's complete. 126 00:24:43,330 --> 00:24:45,370 I asked Ken, he says, yep, everything's been done. 127 00:24:45,490 --> 00:24:45,990 It's all finished. 128 00:24:46,550 --> 00:24:51,150 And then we lower your rate down to what the current rate 129 00:24:51,150 --> 00:24:51,630 is for that. 130 00:24:51,870 --> 00:24:57,790 So we like to keep people in the portfolio that we're doing. 131 00:24:57,930 --> 00:25:00,750 We've worked hard to get a nice new asset on the books. 132 00:25:01,090 --> 00:25:04,570 And we really like our customers to have advantages 133 00:25:04,570 --> 00:25:07,770 of all the hard work that they've done as well. 134 00:25:07,770 --> 00:25:14,610 So, I think it's a win-win all around, as I said, I think that's a great offering. 135 00:25:14,970 --> 00:25:21,370 And then, with the bank every 12 months after that, if the rates decrease, you can do a note modification 136 00:25:21,370 --> 00:25:25,250 instead of doing a refinance and just going to a lower rate that way. 137 00:25:25,450 --> 00:25:29,570 So, we do like to make sure that you're taking care of through the life of the loan. 138 00:25:30,530 --> 00:25:35,830 One other thing too, with the 12 month construction loan, month 13, it converts to principal and interest. 139 00:25:35,830 --> 00:25:40,010 Just I have a lot of people that are done in five to six months, they can convert that 140 00:25:40,010 --> 00:25:40,710 loan early. 141 00:25:41,170 --> 00:25:44,950 I look at it just like a credit card you can pay interest only for another six months 142 00:25:44,950 --> 00:25:47,530 so you can convert and start paying principal and interest. 143 00:25:48,990 --> 00:25:51,810 Probably 75% if they can convert early they will. 144 00:25:52,350 --> 00:25:55,430 So those are all good options to have as you're going through the process. 145 00:25:57,890 --> 00:25:59,190 So thank you, Gary and Ken. 146 00:25:59,530 --> 00:25:59,790 Thank you. 147 00:25:59,870 --> 00:26:02,110 So we'll switch over to the time presentation now. 148 00:26:03,510 --> 00:26:08,910 And then after that, we'll open up for a question and answer a session and go from there. 149 00:26:08,950 --> 00:26:09,310 I 150 00:26:18,590 --> 00:26:19,970 want to show you an individual. 151 00:26:21,510 --> 00:26:24,230 You can all gather on this table. 152 00:26:30,510 --> 00:26:31,890 Did you want to have a join us up here, Mike? 153 00:26:32,070 --> 00:26:33,310 Yeah, sure. I didn't know if we were going to. 154 00:26:36,310 --> 00:26:37,270 Be a little cozy. 155 00:26:37,490 --> 00:26:38,970 All right. 156 00:26:45,760 --> 00:26:48,720 So I'm Jacob LaFontaine. I'm the planning director for the town of Salem. 157 00:26:49,060 --> 00:26:51,820 I'm Julie Moukowski on the WSSR for the town of Salem. 158 00:26:51,820 --> 00:26:56,820 Good evening, everybody. My name is Mike Gallup. I'm the chief building official and deputy fire chief of the town as well. 159 00:26:57,960 --> 00:27:04,080 And what we'd like to do is give an overview of, you know, the aspects of review that our departments have. 160 00:27:04,640 --> 00:27:11,660 So the first that we have here is planning department. So there's been a lot of interest in 80 years. 161 00:27:12,920 --> 00:27:17,860 They've been around for a long time in sale. 1989 is when we adopted our ordinance. 162 00:27:17,860 --> 00:27:21,780 Since we have ones that predate that, typically those are pre-existent nonconformant. 163 00:27:22,420 --> 00:27:34,640 But Salem in 1989 was kind of at the forefront, and even up until July of last year we were kind of the forefront because we still allowed 80 use by right before HB 577, 164 00:27:34,680 --> 00:27:37,560 which Mayor Mack Bank talked about. 165 00:27:38,220 --> 00:27:46,420 Some communities could allow you to have it by special exception, by variance, or not by variance, but special exception or conditional use permit. 166 00:27:46,420 --> 00:27:49,040 Salem historically has always done it by a right. 167 00:27:49,360 --> 00:27:55,840 It doesn't matter anymore anyway because HP 577 told every municipality in the state that you have to allow 168 00:27:56,600 --> 00:28:01,840 ADUs by a right and beyond that you also have to allow detached ADUs by a right. 169 00:28:02,740 --> 00:28:08,800 So we've seen a lot of renewed interest in ADUs, a lot of new interest in ADUs as well. 170 00:28:09,420 --> 00:28:15,960 Primarily the detached ADUs, we permitted to detach ADUs between July or August when we 171 00:28:15,960 --> 00:28:20,720 We amended our ordinance to conform with the new state RSA, the new house bill. 172 00:28:21,540 --> 00:28:26,560 And as of January 1 of this year through today, we've permitted eight. 173 00:28:27,060 --> 00:28:30,220 So that pretty significant grills, significant interests. 174 00:28:30,300 --> 00:28:34,300 We frequently have people who are coming to the counter asking questions. 175 00:28:34,660 --> 00:28:38,160 And exactly why we have this session tonight. 176 00:28:39,360 --> 00:28:42,220 That being said, there are still some parameters. 177 00:28:42,220 --> 00:28:46,560 There's a state that says that you have to allow them by right, you have to allow detachment to use, 178 00:28:46,980 --> 00:28:50,000 but there are still other aspects that are enforced. 179 00:28:50,420 --> 00:28:56,180 So I'm often the conveyor of that information, sometimes the bearer of bad, I don't know if it's bad news, 180 00:28:56,360 --> 00:28:59,960 but the fact that there are some other regulations that need to be met. 181 00:29:00,600 --> 00:29:05,860 And Salem, those are listed here, the primary ones, there's more than this, but 182 00:29:05,860 --> 00:29:07,400 these are typically the ones that come up. 183 00:29:07,400 --> 00:29:12,560 So, we allow ADUs on lots that contain a single family dwelling. 184 00:29:12,740 --> 00:29:16,780 So, if you had a duplex, or if you had a multi-family that you owned, 185 00:29:16,920 --> 00:29:19,080 you couldn't have a detached ADU on that lot. 186 00:29:19,120 --> 00:29:22,400 It has to be a lot that contains one single family dwelling. 187 00:29:22,980 --> 00:29:26,580 And then you can have, at that time, one ADU. 188 00:29:26,700 --> 00:29:28,700 It can be either attached, or it can be detached. 189 00:29:29,460 --> 00:29:33,500 And these are the varieties, Merimack Bank already kind of talked about it. 190 00:29:33,600 --> 00:29:35,780 You know, there's a variety of ways you can do it. 191 00:29:35,780 --> 00:29:40,080 This is from a resource from New Hampshire Housing, which is a very good guide, but it'll 192 00:29:40,080 --> 00:29:40,640 show you. 193 00:29:41,040 --> 00:29:44,220 I've highlighted the detache because that's what we've been seeing a lot of right now, 194 00:29:44,220 --> 00:29:48,380 but you know, finish space above, or you could attach it, or you could finish your space 195 00:29:48,380 --> 00:29:49,080 above your garage. 196 00:29:49,800 --> 00:29:52,620 And in terms of the detache, we've seen a lot of different varieties. 197 00:29:52,800 --> 00:29:54,980 We've seen a garage under, we've seen... 198 00:30:00,000 --> 00:30:29,980 A garage beside. To constitute an ad, you need four components of cooking, so a kitchen, means a sanitation, a bathroom, and then the other two are a little bit more nebulous, so it would be means of dining, and then means of sleeping. You could have a studio apartment and have, you know, those other two, but the ones that typically trigger is the bathroom, the sanitation, in the cooking. We've run into that in some instances where some people come in and they say, well, it's not an ad, you just is, you know, a family room. 199 00:30:29,980 --> 00:30:41,000 with a kitchen and a full bath and so unfortunately it's the, you know, for that individual it's the potential use of that space if you have those four components in the town's eyes it's an E.D.U. 200 00:30:42,020 --> 00:30:47,000 So it also has to be owner occupied. That's a requirement that we've had in our ordinance. 201 00:30:47,600 --> 00:30:52,760 Most communities have that requirement. There are some that don't require it but say on we do. 202 00:30:52,760 --> 00:30:59,980 And there are size restrictions, there are maximum of two bedrooms in 950 square feet of living space. 203 00:31:00,420 --> 00:31:06,940 In living space is how the state defines it, and that means that you could have that garage that's on finishery. 204 00:31:06,960 --> 00:31:12,240 You could have a utility space that wouldn't count towards your 950 square feet of living space. 205 00:31:13,080 --> 00:31:16,680 We talked about the house bill, so I won't really go back into that. 206 00:31:16,800 --> 00:31:19,600 Really what it meant is that we needed to allow the detachment to use. 207 00:31:19,600 --> 00:31:23,080 And that the second prong is kind of interesting. 208 00:31:23,220 --> 00:31:30,680 If you have a pre-existent non-conformin structure, if you have a garage that has a five foot setback where 15 feet is required, 209 00:31:31,240 --> 00:31:38,380 the town can't tell you that you can't convert that to an ADU, you could convert the garage to an ADU by right. 210 00:31:38,820 --> 00:31:45,220 You could add an ADU above the garage, you could add a second floor and put an ADU in that pre-existent 211 00:31:45,220 --> 00:31:49,380 non-conforming structure by right, and you wouldn't need to go to the zone and board 212 00:31:49,380 --> 00:31:50,000 for a variance. 213 00:31:51,940 --> 00:31:57,020 The other items that you'd have to meet, if you could advance to the next slide, is 214 00:31:57,020 --> 00:31:57,640 setback. 215 00:31:57,760 --> 00:31:58,880 So this typically comes up. 216 00:31:59,020 --> 00:32:03,300 A lot of people will come in and say, hey, great, the state says that I can have an ADU 217 00:32:03,300 --> 00:32:07,960 by right, and then I have to tell them, yes, but we also want to make sure that it's in 218 00:32:07,960 --> 00:32:08,960 a conforming location. 219 00:32:09,680 --> 00:32:14,700 This is another resource from New Hampshire Housing, and for those who might not be familiar 220 00:32:14,700 --> 00:32:18,040 Here with setbacks, we have three primary residential districts. 221 00:32:18,120 --> 00:32:22,860 We have a rural district, residential district, and then a recreational district. 222 00:32:23,020 --> 00:32:27,080 Those are the three districts that we allow single-family duplexes homes. 223 00:32:27,240 --> 00:32:29,640 It's probably where the majority of your houses are located. 224 00:32:30,380 --> 00:32:33,920 And in those districts, the setbacks vary somewhat. 225 00:32:34,120 --> 00:32:39,500 So, recreational district, if you're on Arlington pond or if you're on captains pond, 226 00:32:39,500 --> 00:32:47,140 on Millville Lake or Shadow Lake, those often times, or most cases are recreationally zoned properties. 227 00:32:47,680 --> 00:32:51,960 Their cognizant of the fact that the historic pattern of development was more dense. 228 00:32:52,520 --> 00:33:02,320 They were traditionally camped sites, so you'd have, you know, it'd be more characteristic for that area to have a 15 foot rear and 15 foot side setback. 229 00:33:02,740 --> 00:33:08,500 They do still have to meet 30 feet from the front, and generally that's because we want to protect the traveling public. 230 00:33:08,500 --> 00:33:13,020 look, we don't want to put a house that could be a hazard to the traveling public in the right of way. 231 00:33:13,620 --> 00:33:20,640 And also because of Parking, if you have a 15 foot front setback, you're not going to be able to put most of your vehicles in the driveway. 232 00:33:21,300 --> 00:33:29,520 So each residential district has a 30 foot setback on the front, and then it varies 15 or 30. 233 00:33:29,620 --> 00:33:37,900 So if you're in North Salem, you probably have a rural zone property if you're not on Arlington, and it's likely 30 feet rear side in front. 234 00:33:37,900 --> 00:33:46,500 And that's illustrated in this image here, so it's kind of intuitive, but the front would be towards the street side to the side of the house and then the rear to the rear of the house. 235 00:33:47,060 --> 00:34:03,800 The other considerations, we do have other criteria that need to be met that hasn't really come up as often, but we're seeing it more particularly in the recreational district where you have a 5,000 square foot lot or you know that you can't really meet these requirements, but building coverage is another item. 236 00:34:03,800 --> 00:34:07,880 So it's not your lot coverage, you can have a paved drive and that doesn't count towards it. 237 00:34:08,120 --> 00:34:15,480 But if you had a house that occupies 25% of your build, you have your buildable air, 238 00:34:15,600 --> 00:34:20,980 your lot coverage, it would be difficult maybe to accommodate a detatch at you because you might 239 00:34:20,980 --> 00:34:26,300 exceed that and that would trigger a variance. Similarly, if you're not able to meet the setbacks, 240 00:34:26,680 --> 00:34:31,360 that triggers a variance. If you're not able to meet the size requirement, if you say, 241 00:34:31,360 --> 00:34:37,060 And this has happened, if you say out, we really need an ADU that exceeds the 950 square feet. 242 00:34:37,680 --> 00:34:39,480 The mechanism to do that would be a variant. 243 00:34:39,660 --> 00:34:45,300 So there is kind of an escape hatch, I guess, that you could seek if you needed to. 244 00:34:45,740 --> 00:34:48,440 But these are what's existed in the ordinance. 245 00:34:48,860 --> 00:34:52,060 This was adopted a while back, 1989 at town meeting, and 246 00:34:52,060 --> 00:34:57,920 it's been amended over time to conform with the requirements of the current House bill. 247 00:34:57,920 --> 00:35:05,300 So there are two other things that we always try our best to make sure are known because we don't want to surprise anybody. 248 00:35:06,040 --> 00:35:11,660 And as prizes are bad in this case, impact fees are associated with new development. 249 00:35:11,840 --> 00:35:16,300 We assess impact fees in Salem for all new development, whether it be commercial or residential. 250 00:35:17,140 --> 00:35:21,920 For the residential impact fee, that goes to public safety, also police and fire. 251 00:35:22,140 --> 00:35:24,800 It goes to schools and it goes to recreation. 252 00:35:24,800 --> 00:35:35,620 So those and traffic, I'm sorry, so that there are four impact fees that are assessed for residential development and it equates to that $5,884. 253 00:35:35,740 --> 00:35:42,940 It's a one time fee and it has to be paid at one time prior to occupancy. 254 00:35:43,420 --> 00:35:46,260 So the other fee that we have is a demand benefit assessment. 255 00:35:47,100 --> 00:35:50,800 And that's for the increased demand on your water and sewer. 256 00:35:50,800 --> 00:36:09,000 So if you were on town water and town sewer, the idea would be that this additional development will increase demand on the services and to offset the cost to the general taxpayers, the general rate pairs, the ideas to assess that on the new development. 257 00:36:09,000 --> 00:36:14,740 But these fees can be paid over time because they have the leverage of your utility bills. 258 00:36:15,400 --> 00:36:21,680 And plan that I can't, I have the occupancy permit and once that's issued I, for your sake hopefully won't see me again. 259 00:36:21,860 --> 00:36:28,440 But for the demand benefit assessment, that can be paid as an annual fee and 260 00:36:28,440 --> 00:36:33,000 I don't have that fee in front of me, but it's 2700, it would be the total. 261 00:36:33,000 --> 00:36:35,900 and then that's without interest and then water is 1800. 262 00:36:36,800 --> 00:36:40,440 And that can be paid in a lump sum if you wanted prior to, 263 00:36:40,840 --> 00:36:43,640 or it can be paid in the annual rate with interest. 264 00:36:45,060 --> 00:36:48,800 And then the other item that often comes up is your septic lot load 265 00:36:48,800 --> 00:36:49,420 and requirements. 266 00:36:49,940 --> 00:36:53,420 So again, you might meet your setbacks, you might meet your lot coverage, 267 00:36:53,600 --> 00:36:54,980 you might be able to pay the impact fee 268 00:36:54,980 --> 00:36:56,320 in the demand benefit assessment. 269 00:36:56,880 --> 00:37:00,880 But ultimately, you might not have the soils to accommodate the additional demand 270 00:37:00,880 --> 00:37:03,660 and for the additional bedroom counts. 271 00:37:04,240 --> 00:37:09,320 So those of you who are on a septic system, your septic demand is based off of your bedroom count. 272 00:37:09,500 --> 00:37:14,040 So say you have a three bedroom system and you want to add a two bedroom ADU. 273 00:37:14,240 --> 00:37:26,380 You need to demonstrate to the state and to the municipality because we're a self inspecting community that you have the ability to accommodate that use on lot on the existing lot. 274 00:37:26,380 --> 00:37:37,980 But there are some, we've run into this more recently, there are some ways maybe to address that you could potentially abandon some of the bedrooms that you have in your primary. 275 00:37:38,940 --> 00:37:47,660 And then the other thing I would note is that in ADU, even if you have a one bedroom ADU, the septic lot load and requirement is one and a half. 276 00:37:48,140 --> 00:37:54,800 So one and a half bedrooms, because there's an anticipated demand just from the fact that it's a separate distinct unit. 277 00:37:54,800 --> 00:38:23,820 So those are the things that sometimes when somebody comes into the counter we kind of have to convey to them and we try very hard to make sure that these are known aspects of the project, so that nobody surprised, you know, it is community that's been accommodated into ADUs, like I said, up until last year we were kind of on the progressive end by allowing them by right, you know other communities when I talk to some of my colleagues and they say, oh yeah, no, you know 900 or 750 square foot ADU has to go to the ZBA for a special exception. 278 00:38:23,820 --> 00:38:36,000 That adds time and money to your project, and it's been easier, the state alleviated that aspect of it, but we still have some other aspects that we wanted to make sure that you're aware of. 279 00:38:39,120 --> 00:38:50,700 When you're ready to apply, there'd be two things, you'd submit the building permit, Mike is our chief building official, so he would sign it, Scott Sullivan or John Romano. 280 00:38:50,700 --> 00:38:54,180 You know, Scott was here earlier, our building inspector, they would sign it as well. 281 00:38:54,620 --> 00:38:59,760 And then if you're on town water and town sewer, then our engineer, senior engineer, signs it. 282 00:39:00,000 --> 00:39:04,760 If you're on septic, then our health officer signs it, and he's looking at your lot loading requirements. 283 00:39:04,940 --> 00:39:09,680 And then I sign it from planning to make sure that you're in compliant with all those fun things I highlighted. 284 00:39:10,680 --> 00:39:18,200 In addition to the building permit, there's a standalone permit that's associated with ADUs that you'd also have to fill out. 285 00:39:18,200 --> 00:39:24,020 And this is really just to ensure that you're aware of the things that we just talked about in terms of the zone and ordinance. 286 00:39:24,240 --> 00:39:46,360 It's really a reiteration or, you know, we just kind of restatement of the ordinance and it's a verification by the property owner that yes, I'm aware of these aspects of the project and yes, I can attest that I'm going to meet them and then we would have you sign that and then again it's reviewed by plan and engineer in our health and then the building inspector as well. 287 00:39:46,980 --> 00:39:51,300 So, that's the kind of plan and aspect of ADUs. 288 00:39:53,910 --> 00:39:57,510 All right, so from the assessing standpoint, this is where I might get a little boring. 289 00:39:58,710 --> 00:40:04,910 So, we look at, you know, what do you want, what do you need for your home? 290 00:40:05,090 --> 00:40:07,030 Like, is it detached really the way to go? 291 00:40:07,530 --> 00:40:12,190 Should you use more of an avenue as to, hey, I have an unfinished basement? 292 00:40:12,570 --> 00:40:15,370 Let's use what I already have, try to utilize that instead. 293 00:40:17,330 --> 00:40:23,010 It's hard to really say because it's not like a blanket value across the board and all 294 00:40:23,010 --> 00:40:28,430 depends on what is decided that you need whether it's two bedrooms, two baths, if it's 295 00:40:28,430 --> 00:40:30,330 how many square feet you're going to be using. 296 00:40:30,770 --> 00:40:38,810 If you end up adding the space to the home or if you do a detached ADU or if you reuse 297 00:40:38,810 --> 00:40:39,730 already finished space. 298 00:40:39,970 --> 00:40:44,450 So if you have a finished space name and you're like, you know, we don't use this anymore for 299 00:40:44,450 --> 00:40:47,170 or the initial use of it like playroom, 300 00:40:47,310 --> 00:40:49,750 all the kids are grown, blah, blah, blah. 301 00:40:50,210 --> 00:40:52,910 Then you can reutilize that, reuse it, 302 00:40:53,050 --> 00:40:55,050 put in the kitchen, put in the living room, put in the bedroom, 303 00:40:55,430 --> 00:40:56,870 and use that as space instead. 304 00:40:58,450 --> 00:41:01,990 So it also, sorry Jacob. 305 00:41:03,170 --> 00:41:06,310 So a lot of the details that we look at when we do assess 306 00:41:06,310 --> 00:41:10,070 is, again, bathrooms are going to counter to the value 307 00:41:10,070 --> 00:41:10,550 of your home. 308 00:41:10,990 --> 00:41:12,250 So how many bathrooms are you adding? 309 00:41:13,050 --> 00:41:21,450 Bedrooms will matter after a certain point for bedrooms or more for total for your house doesn't add any value for it to your home 310 00:41:22,450 --> 00:41:24,410 We're also looking at 311 00:41:27,590 --> 00:41:33,010 The kitchen kitchen is gonna add value because it's you know plumbing the electric all that stuff 312 00:41:33,010 --> 00:41:34,730 You have to put in all the extra stuff 313 00:41:34,730 --> 00:41:41,470 So, I do have some examples of different types of ADUs that people have done. 314 00:41:42,030 --> 00:41:47,110 Again, there's the detached ADU that is, like Jacob said, very up and coming. 315 00:41:47,190 --> 00:41:50,390 Everybody's looking for it, poking around to see if it works for them. 316 00:41:51,530 --> 00:41:57,530 This is more like the most expensive option that I've noticed from any of the others 317 00:41:57,530 --> 00:42:00,450 because you're building another house on your property. 318 00:42:00,450 --> 00:42:08,210 This particular example, it up to their value about almost, I think it was $99,000, almost 319 00:42:08,210 --> 00:42:12,050 around there, because you have a whole separate house there. 320 00:42:13,470 --> 00:42:17,650 So you're not getting charged again for the land, the land's just charged flat, blanket, 321 00:42:17,970 --> 00:42:19,050 because it's already there. 322 00:42:19,650 --> 00:42:25,590 There is what we call a functional ops lessons, which means that we kind of give you a discount 323 00:42:25,590 --> 00:42:27,210 I don't because of the site improvements, 324 00:42:27,210 --> 00:42:30,690 except it's well sewer, public water, 325 00:42:31,070 --> 00:42:33,270 so we don't want you to get charged twice for that. 326 00:42:35,090 --> 00:42:36,630 Next, this is, 327 00:42:37,170 --> 00:42:38,730 no, jeez, I'm creating, if you go, yeah. 328 00:42:39,150 --> 00:42:42,410 So this is gonna let you know that every factor 329 00:42:42,410 --> 00:42:44,610 that you have for the detached edu, 330 00:42:45,070 --> 00:42:46,090 what kind of flooring you have, 331 00:42:46,250 --> 00:42:50,450 what kind of heat and AC, all that kind of stuff 332 00:42:50,450 --> 00:42:52,890 is going to the site on the house, the roof, 333 00:42:53,290 --> 00:42:54,370 that's gonna add to the value. 334 00:42:54,850 --> 00:43:02,810 This is the only type of ADU that's going to have that factor valuing with everything. 335 00:43:03,090 --> 00:43:08,190 The rest of the ADUs we don't look at the society because it's already assessed with 336 00:43:08,190 --> 00:43:08,670 the main house. 337 00:43:09,990 --> 00:43:17,230 Okay, and if you want to go to the next one, this is an example of the using spaces already 338 00:43:17,230 --> 00:43:24,970 was there. So this one, again, very minimal cost to do this. This is, I believe, the cheapest 339 00:43:24,970 --> 00:43:31,410 way to go about doing an ADU on the next one, Crane. So they had space on the side that 340 00:43:31,410 --> 00:43:38,730 they had finished before and they decided to turn that into an accessory apartment. So 341 00:43:38,730 --> 00:43:44,090 because they already had that space finished, that didn't change the value. The kitchen, adding 342 00:43:44,090 --> 00:43:51,690 the kitchen, adding the bathroom, adding a bedroom may have decided to, that those factors 343 00:43:51,690 --> 00:43:56,310 decided to change the value, but very minimally because it's already done. The same with 344 00:43:56,310 --> 00:44:02,930 the next example, which is on Elizabeth Lane, they had a finished basement area that they 345 00:44:02,930 --> 00:44:08,150 decided to turn to an ADU. Again, that was very minimal. If you want to go to the next 346 00:44:08,150 --> 00:44:14,170 one. It was in the basement that was already finished prior. So just the added cost was, 347 00:44:14,390 --> 00:44:21,590 again, the kitchen, the bathrooms, that kind of stuff. And the next two examples are 348 00:44:21,590 --> 00:44:28,310 ones that the basements were completely unfinished. Pretty cool, but the next one. This one is 349 00:44:28,310 --> 00:44:33,810 at Marshae. No. Which one is this? Marshae. Thank you. They had a completely unfinished 350 00:44:33,810 --> 00:44:40,410 basement, they renovated the garage that was there and I believe they added like two bedrooms 351 00:44:40,410 --> 00:44:46,830 and two baths. So this made that one go up considerably more because they're adding all those extra 352 00:44:46,830 --> 00:44:52,710 factors, all the extra work. So those are all things like keep in mind when you're deciding what you 353 00:44:52,710 --> 00:44:54,990 want to do with an EDU if you decide to do any. 354 00:45:34,640 --> 00:45:59,980 That's another example of just utilizing space that you already have. A lot of people with family being in your home, then you are with a complete stranger that you're just going to rent out to. So we see that more often than not where, you know, your kids are looking for a space to live. So they decide to come live with you or vice versa. You don't need all the space that you have. So your kids have to live. 355 00:45:59,980 --> 00:46:02,780 have a great house and a great neighborhood and you're going to move in with them to help 356 00:46:02,780 --> 00:46:07,380 out with the grandkids and that's what people are most comfortable with. 357 00:46:08,440 --> 00:46:09,620 Creighton, can you go in the next one? 358 00:46:09,960 --> 00:46:10,940 So this is another one. 359 00:46:11,060 --> 00:46:12,180 This was done a few years ago. 360 00:46:14,580 --> 00:46:19,080 This is an example of adding a completely new space that was never there before. 361 00:46:19,640 --> 00:46:22,060 Not detached from the house, this is attached to the house. 362 00:46:22,060 --> 00:46:29,880 This is the second to two top value-wise if you want to go this route. 363 00:46:30,220 --> 00:46:36,500 This particular one on Merrill, if you want to go the next one, they actually added quite 364 00:46:36,500 --> 00:46:37,020 a bit of space. 365 00:46:37,300 --> 00:46:41,080 They added a base thing, parts of it are finished, parts aren't finished. 366 00:46:41,560 --> 00:46:46,500 They added obviously the first floor, and then they also added a 3-quarter story. 367 00:46:46,740 --> 00:46:48,640 So it's a considerable amount of square feet. 368 00:46:48,640 --> 00:46:55,560 And the square feet of the ADU obviously matters or it kind of determines a little bit more of what the value will be. 369 00:46:55,680 --> 00:46:57,760 The more square footed you finish, the higher the value. 370 00:47:00,040 --> 00:47:03,080 So I mean they added, a DACA they add all sorts of stuff to this one. 371 00:47:04,280 --> 00:47:06,780 So it just ramped it up for them. 372 00:47:07,520 --> 00:47:08,620 Can you go to the next one? 373 00:47:12,120 --> 00:47:15,200 Excuse me. So this one on Melissa, they did the same. 374 00:47:15,640 --> 00:47:17,100 They added on to the back of it. 375 00:47:18,160 --> 00:47:22,380 And that added, again, considerable amount of value to their property. 376 00:47:22,960 --> 00:47:23,980 Can you give it back? 377 00:47:24,640 --> 00:47:24,940 Thank you. 378 00:47:25,340 --> 00:47:27,280 So they added the back half there. 379 00:47:27,700 --> 00:47:29,120 They don't have a basement there. 380 00:47:29,260 --> 00:47:29,860 They have a slab. 381 00:47:30,100 --> 00:47:35,860 And what we've been noticing is the slab, if you do that for like your basement, that doesn't 382 00:47:35,860 --> 00:47:37,740 add any value to your property whatsoever. 383 00:47:38,420 --> 00:47:40,340 There's obviously no space that you can utilize. 384 00:47:40,640 --> 00:47:44,660 So therefore it's just, we just label it just so we know what it is. 385 00:47:45,500 --> 00:47:53,660 So that they added two bedrooms, a bath, the kitchen, and that was, I believe around 900 square feet somewhere in there. 386 00:47:54,220 --> 00:48:00,560 So it's a lot, but again, that kind of option is more of what you would do for family. 387 00:48:01,120 --> 00:48:08,280 With it being kind of off to the side, I could see how some people would do that to just rent out to home ever they would like to just have an investment into their property. 388 00:48:09,340 --> 00:48:12,990 Yeah, I think that's probably it. 389 00:48:13,450 --> 00:48:16,250 Do you want to go now, Link? 390 00:48:16,550 --> 00:48:16,790 Sure. 391 00:48:22,890 --> 00:48:23,570 Hello, everybody. 392 00:48:24,010 --> 00:48:27,990 So one of the big questions that comes up is our permits required and they are. 393 00:48:28,810 --> 00:48:32,030 In New Hampshire, the building permit can be obtained by anybody. 394 00:48:32,150 --> 00:48:37,010 We don't have any licensing for the building permit only, so basically who frames the house. 395 00:48:37,010 --> 00:48:46,650 However, skilled trades such as plumbing, gas, electrical, those are required to be obtained by a licensed electrician. 396 00:48:47,210 --> 00:48:56,270 There is provisions in the state that basically talks about if it's your primary dwelling that you reside at, you yourself can pull the permit. 397 00:48:56,850 --> 00:49:03,190 If you want to pull those skilled trades such as it's my own house, I'm going to do my own plumbing in my house. 398 00:49:03,190 --> 00:49:10,190 However, if you have an ADU, you're no longer eligible for that option, because it's no 399 00:49:10,190 --> 00:49:12,590 longer your primary dwelling because you share it with somebody else. 400 00:49:13,090 --> 00:49:14,470 So sometimes that comes up a lot. 401 00:49:14,870 --> 00:49:19,510 I also think it's important to note that it has to be a new hamster of license contractor 402 00:49:19,510 --> 00:49:24,230 or right on the border with Massachusetts, and a lot of times mass contractors come up, 403 00:49:24,590 --> 00:49:26,750 and specifically it has to be a new hamster. 404 00:49:28,010 --> 00:49:31,630 Another item that always comes up is smoking carbon monoxide detectors. 405 00:49:31,630 --> 00:49:35,690 So, they're required to be tied in throughout the whole residence. 406 00:49:36,250 --> 00:49:39,710 So, Sam's unique community where there's different vindages of houses. 407 00:49:40,050 --> 00:49:45,470 So, some houses didn't have carbon monoxide detectors or smoke detectors that are interconnected. 408 00:49:46,290 --> 00:49:49,550 When you do an ADU, they're required to be interconnected. 409 00:49:49,870 --> 00:49:56,850 So, if an emergency happens in the primary dwelling or the ADU dwelling, they're both residents 410 00:49:56,850 --> 00:49:57,750 get notified. 411 00:49:58,730 --> 00:50:04,750 That being said, there's more creative ways to do it, so previously you have to run 412 00:50:04,750 --> 00:50:06,710 wire, which can be very expensive. 413 00:50:07,150 --> 00:50:11,830 Now there's Bluetooth options, there's Wi-Fi options, so that really reduces the cost, 414 00:50:12,230 --> 00:50:14,270 but it still allows for the same level of safety. 415 00:50:15,810 --> 00:50:16,710 So that's an option. 416 00:50:17,290 --> 00:50:18,730 We already talked about skilled trades. 417 00:50:19,150 --> 00:50:24,370 The big one right now is our current building code that we're operating under is the 2021 418 00:50:24,370 --> 00:50:24,930 code. 419 00:50:24,930 --> 00:50:48,930 the legislation body up at the state, they adopt code cycles, usually between July and August, roughly is that time frame, and they're expected from what I'm hearing to adopt the 24 editions of the building code, the electrical code, the plumbing code, and what they're not changing is the energy code. 420 00:50:48,930 --> 00:50:53,390 So the energy code is remaining at the 2018 edition, that's really important just because 421 00:50:53,850 --> 00:50:57,450 the energy code can be very challenging and very expensive to meet. 422 00:50:57,930 --> 00:51:01,310 So they're maintaining the current edition, which is the 2018 edition. 423 00:51:02,270 --> 00:51:07,210 That being said, we're still operating under the 2021 codes, but I think it's really important 424 00:51:07,210 --> 00:51:14,110 to inform you that that changes likely to change to the 2024 codes, typically how that works 425 00:51:14,110 --> 00:51:20,670 is the fire code in previous years has always gone into effect when they sign it in, so there's no grace period. 426 00:51:21,410 --> 00:51:28,270 But the building code in years past, and I expect them to do it this year, typically they give you a grace period to operate under, 427 00:51:28,610 --> 00:51:36,710 in this case it would be 2021, from when it's accepted to December, you can operate under either one, and then effective December, 428 00:51:37,290 --> 00:51:43,510 sorry January of 27, you would be forced to utilize the 2024 code. 429 00:51:43,510 --> 00:51:48,370 Like I said, I don't want to get too far ahead of myself because it hasn't been formally adopted, 430 00:51:48,370 --> 00:51:52,370 but I do think that's really important to inform you with any big changes. 431 00:51:52,610 --> 00:51:57,670 Like anytime there's a code cycle, some things get less restrictive and other things get more restrictive. 432 00:51:57,950 --> 00:52:00,710 So by taking a look at it, I think there's equal trades. 433 00:52:01,410 --> 00:52:05,750 There's nothing that I can commit to memory that's glaring, 434 00:52:05,850 --> 00:52:08,630 that's going to drive the cost up really expensive. 435 00:52:08,930 --> 00:52:12,330 And the reason for that is we're staying under the 2018 energy code. 436 00:52:12,330 --> 00:52:21,450 And that's why that cost is kind of maintaining flat and there's nothing really that's an exponential cost from making that code change. 437 00:52:22,390 --> 00:52:24,630 I think that's really all I have in permitting. 438 00:52:24,950 --> 00:52:34,110 Oh yes, so permitting hour, so permitting hour, so building permits are obtained here at Town Hall upstairs from 830 to 930. 439 00:52:34,110 --> 00:52:38,670 We are committed, and we've made great strides to bring some permits online, 440 00:52:39,770 --> 00:52:47,050 such as all fires online, all health is online, electrical, residential is online. 441 00:52:47,230 --> 00:52:49,110 It will be fully online by the end of this week. 442 00:52:49,570 --> 00:52:52,350 And then we're going to work on plumbing, gas, mechanical. 443 00:52:52,690 --> 00:52:53,830 And then building will be last. 444 00:52:54,370 --> 00:52:57,810 The reason why buildings always last is because it's the most complex. 445 00:52:58,210 --> 00:53:00,530 And typically the building permit kind of starts at first. 446 00:53:00,650 --> 00:53:03,150 And then the other mechanical permits attached to it. 447 00:53:03,150 --> 00:53:07,410 So, that's the reason why building will be last, but we are committed to getting that online as well. 448 00:53:09,630 --> 00:53:16,670 So, thank you to the folks from Merrimack County Savings Bank and to the Tom Staff for giving these presentations. 449 00:53:17,570 --> 00:53:28,210 I'm going to do a Q&A section now if Gary and Ken could come over here and then all walk around with a microphone and you can raise your hand and ask anyone questions about any of the presentations. 450 00:53:50,300 --> 00:53:54,300 It's got to be a contract that licensed in New Hampshire, correct? 451 00:53:54,640 --> 00:54:01,920 Correct. So it has to be a licensed, a person that holds a license in a skill tray which would be plumbing gas mechanical. 452 00:54:02,440 --> 00:54:06,240 Like I stated at the building, there's no building license in the state of New Hampshire. 453 00:54:06,480 --> 00:54:09,260 Okay. I just wanted to make sure that I knew the answer to that. 454 00:54:09,260 --> 00:54:17,800 Thank you. I appreciate the clarification that it was as long as they have a license in New York because there are no Massachusetts contract. It's not a license in both. 455 00:54:19,080 --> 00:54:32,320 Building codes. If I am building an ADU in my basement, does that mean I have to bring the entire house up to the current codes or just the ADU? 456 00:54:33,080 --> 00:54:35,360 So it depends on what you're changing. 457 00:54:35,840 --> 00:54:40,840 So the reason why I say that is, you know, for instance, if you are, you know, changing 458 00:54:40,840 --> 00:54:44,560 the furnace or something to that effect, if you're affecting something else that affects 459 00:54:44,560 --> 00:54:48,740 the other primary dwelling, I think what you're, what you may be trying to like an example 460 00:54:48,740 --> 00:54:51,360 would be is electrical, right, because your electrical panel. 461 00:54:51,620 --> 00:54:57,960 So if you are able to safely, you'd have to bring that area in the basement and your example 462 00:54:57,960 --> 00:55:01,740 up to current electrical code. However, you wouldn't have to bring up the whole 463 00:55:01,740 --> 00:55:06,120 house to electrical code. Okay, and one more if you don't mind. This one's for the 464 00:55:06,120 --> 00:55:11,160 bank. You talked about the bank would have the year their inspections. You 465 00:55:11,160 --> 00:55:14,860 actually sending people out to check the found, you know, look at the foundation 466 00:55:14,860 --> 00:55:21,140 or look at the framing. We're we're expecting on as completed work. So we're 467 00:55:21,140 --> 00:55:25,020 looking at the work we're not certifying that it's done correctly or you know 468 00:55:25,020 --> 00:55:29,420 the quality and craftsmanship of the work where we're confirming that it is 469 00:55:29,420 --> 00:55:33,240 complete. Okay, so we have actual people who go out and they actually go out and 470 00:55:33,240 --> 00:55:36,680 that if you go out take pictures do all the rest of it meet with the builder say hey 471 00:55:36,680 --> 00:55:41,000 what have you done and then we'll pay whatever in line items on the budget that is 472 00:55:41,000 --> 00:55:44,880 on that request that's that's what we kind of check for. Okay thank you that's 473 00:55:44,880 --> 00:55:47,320 all right. Any other questions? 474 00:55:50,440 --> 00:55:54,200 Hello question on plumbing water and 475 00:55:54,200 --> 00:55:57,880 Does the sewer, town water and sewer on a detached ADU? 476 00:55:58,840 --> 00:56:02,940 Does it have to tie into the main house? 477 00:56:03,860 --> 00:56:09,800 Does the water and sewer, I'm trying to say, have the company, the main house, into the detached ADU. 478 00:56:10,080 --> 00:56:16,180 Or could have a patient be applied for separate utilities to the ADU? 479 00:56:16,800 --> 00:56:20,200 You can have, well, you still have to have one curb's stop. 480 00:56:20,200 --> 00:56:42,900 I don't know if I'm going to understand, so you still have to have the water come in at the same location and this is really engineer and the water department, but my understanding is that it could still come in at the same location and you could tee it off so it doesn't have to go to, it doesn't have to come, you know, originate from the primary, it just has to originate from that existing curb stop or your existence service. 481 00:56:42,900 --> 00:56:43,060 Yes. 482 00:56:50,440 --> 00:56:50,720 Hello. 483 00:56:51,420 --> 00:56:52,560 I have three questions. 484 00:56:54,220 --> 00:56:55,020 What's an ADU? 485 00:56:55,180 --> 00:56:57,800 Could you build it solely with the intent to rent? 486 00:56:58,160 --> 00:57:00,300 What does it have to be like a family member moving in? 487 00:57:00,900 --> 00:57:04,320 You can't make a distinction between the occup- 488 00:57:04,320 --> 00:57:05,780 Historically, there was a distinction. 489 00:57:06,040 --> 00:57:10,820 You could have an in-law apartment, and that would have to be rented to a blood relative, 490 00:57:10,980 --> 00:57:16,920 and we even have the restrictions that state that has to be rented to a blood relative. 491 00:57:16,920 --> 00:57:21,620 We no longer make that distinction. It can be rented to anybody whether they're relative or not 492 00:57:22,500 --> 00:57:22,940 Okay 493 00:57:23,760 --> 00:57:27,800 My second question here is if I was to 494 00:57:29,560 --> 00:57:30,740 Before my basement 495 00:57:31,420 --> 00:57:32,300 How does 496 00:57:33,540 --> 00:57:38,380 Egress come into it? Do I have like two ways of egress of anything right now? I have one door 497 00:57:38,380 --> 00:57:42,280 You need to let them knock out a wall do something to that. No, it's a great question 498 00:57:42,280 --> 00:57:44,020 So it's really a case by case basis 499 00:57:44,020 --> 00:57:48,120 So to answer your question is you can utilize other, you know, if you can go 500 00:57:48,120 --> 00:57:52,140 off through like the primary dwelling, if you're able to go out through that, that 501 00:57:52,140 --> 00:57:56,520 can count. You know, you can have a sliding, you know, like another door, 502 00:57:56,900 --> 00:58:02,280 like a slider or another outdoor. But the part that you can't exit out of 503 00:58:02,280 --> 00:58:05,100 and can't be counted is what they call like a high level 504 00:58:06,360 --> 00:58:11,000 a hazard, so that'd be like a garage, right? So you can't exit out into a garage. 505 00:58:11,000 --> 00:58:18,580 the reason for that is that is considered high, like an area that more danger is likely, 506 00:58:19,280 --> 00:58:24,680 so because the cars are parked there, people put gas there, so you can't exit out to that, so that can't count. 507 00:58:25,020 --> 00:58:33,820 So a lot of times the most cost-effective way is people do basically, they cut into the foundation, they do almost like a well basically, 508 00:58:34,300 --> 00:58:39,240 and it's kind of like a half-door, it's kind of the most cost-effective way to do it, but there's many different ways to do it. 509 00:58:39,240 --> 00:58:44,280 If you were to come down during a permanent hour and you know, it doesn't have to be an engineer plan 510 00:58:44,280 --> 00:58:47,740 You can even draw it all like a graph paper. We can give you further direction 511 00:58:47,740 --> 00:58:50,120 But it just has to meet the minimum code standard 512 00:58:50,120 --> 00:58:53,120 How many are required two two 513 00:58:54,440 --> 00:58:59,280 And I'm wondering what's a lot is that override like neighborhood covenants is 514 00:58:59,720 --> 00:59:02,240 And I lived in a neighborhood once you know 515 00:59:02,240 --> 00:59:06,140 You want supposed to put clothes lines in for instance. Yeah, it was very restrictive 516 00:59:06,140 --> 00:59:08,340 I just wonder if this lock and override that 517 00:59:09,040 --> 00:59:18,100 So, if you were a member of a homeowner association, your homeowner association could have a covenant that would prohibit a detached ADU. 518 00:59:18,440 --> 00:59:25,960 I don't know that that's the case or not, but there could be our homeowner associations in Salem and the state wouldn't over. 519 00:59:26,380 --> 00:59:30,340 That this HB577 wouldn't over ride their covenant. 520 00:59:45,430 --> 00:59:51,150 My question is with regard to following up with his question over here of a rental. 521 00:59:51,150 --> 00:59:54,970 So, I do like catch whether or not it has... 522 01:00:00,690 --> 01:00:30,370 The primary or secondary, but it's really for the bank is for the secretary as a rental, is it then an investment, the loan, or is it still going to be a second mortgage? These are only on on on primaries. So it would be you wouldn't be able to do the 80 loan on a non-primary residence. So these these all and a lot of the laws follow the primary residence covenant. It doesn't really cover a lot of 523 01:00:30,370 --> 01:00:38,130 a lot of, you know, people trying to build 80 use onto their investment properties to, you know, multiply their rental abilities. 524 01:00:38,410 --> 01:00:43,250 So this is mainly a, you know, trying to do infill within regards to your primary residence. 525 01:00:44,030 --> 01:00:44,430 Yeah. 526 01:00:45,010 --> 01:00:48,870 Yeah. I think the gentleman's question was whether or not it needed to be a strategy to a relative. 527 01:00:49,370 --> 01:00:50,250 And that used to be the case. 528 01:00:50,490 --> 01:00:51,810 We still have conversions. 529 01:00:52,010 --> 01:00:57,250 So some people might come in and they might say, I've got a, you know, permit it in law that I did in 1992. 530 01:00:57,250 --> 01:01:02,590 to all their documentation is going to say that that unit has to be rented to a blood 531 01:01:02,590 --> 01:01:07,770 relative. So we'd walk them through the conversion from an in-law that's bound to be 532 01:01:07,770 --> 01:01:14,090 rented to a blood relative to now an accessory or an ADU, which can be rented to anybody. 533 01:01:14,550 --> 01:01:18,670 But there is the owner occupancy. So we see it, we're seeing a lot of it. 534 01:01:19,030 --> 01:01:24,030 Some people want to age in place, you know, they've got kids who have young children, 535 01:01:24,030 --> 01:01:26,870 and they are constrained by the housing market. 536 01:01:27,550 --> 01:01:30,350 So the grandparents in this instance are now saying, 537 01:01:30,450 --> 01:01:32,750 well, I'm gonna relocate. 538 01:01:32,850 --> 01:01:34,090 I don't need as much space now. 539 01:01:34,090 --> 01:01:37,690 And I'm gonna turn over the, you know, my home 540 01:01:37,690 --> 01:01:40,970 to my grandchildren and my children. 541 01:01:41,550 --> 01:01:43,370 And I'll move to the ADU. 542 01:01:43,590 --> 01:01:44,930 And we see it kind of vice versa too. 543 01:01:44,990 --> 01:01:46,870 But that's probably one of the most common instances 544 01:01:47,290 --> 01:01:49,110 where somebody comes in, especially the detached 545 01:01:49,110 --> 01:01:50,910 because you're real close. 546 01:01:51,210 --> 01:01:53,550 But you know, my parents would love to be living 547 01:01:53,550 --> 01:01:58,870 on my property but maybe not in my house, so you're real close but you're not too close. 548 01:01:59,170 --> 01:02:02,930 So they can still kind of see the kids and all that and that's what we've seen a lot 549 01:02:02,930 --> 01:02:08,230 with these detached ADUs, people who are living in the primary but will downsize to the 550 01:02:08,230 --> 01:02:15,090 950 square foot ADU and yeah, it can be anybody but it doesn't, it does have to be on our 551 01:02:15,090 --> 01:02:18,510 are occupied, either the ADU or the primary. 552 01:02:28,540 --> 01:02:39,460 Bedrooms, say a homeowner is building an ADU and they want to be able to, you know, utilize the same 553 01:02:39,460 --> 01:02:43,900 septic system that they have now. How does one up the end of the bedroom? 554 01:02:44,320 --> 01:02:46,780 Yeah, so a lot of people have a perception that it's closets. 555 01:02:47,120 --> 01:02:51,140 And some communities that might be, you know, if they have a regulation that says the closet 556 01:02:51,140 --> 01:02:53,460 it makes the bedroom, but in Salem, we don't have that. 557 01:02:53,720 --> 01:02:57,140 The closet doesn't make the bedroom, and you could have a closet without a bedroom. 558 01:02:57,500 --> 01:03:01,980 So it's a good question, what constitutes a bedroom and 559 01:03:01,980 --> 01:03:06,200 what's going to be used as an office or other use. 560 01:03:06,700 --> 01:03:10,700 It's something that we're seeing more of because there's more interest in 561 01:03:10,700 --> 01:03:14,880 aid use and fortunately, I guess maybe for my sake, it's the health officer. 562 01:03:15,340 --> 01:03:19,700 And in the state, DES is going to review your septic design. 563 01:03:19,700 --> 01:03:29,920 And they're going to ask those hard questions and I guess make a determination of what constitutes a bedroom and what doesn't, but it's a good question and we've seen it a lot lately. 564 01:03:30,240 --> 01:03:38,100 If I can pick you back off of Jacob for this is a conversation I've had with the building inspector many times. 565 01:03:38,860 --> 01:03:47,400 So for assessing purposes, we constitute anything that has a closet as a bedroom and we will assess it as such. 566 01:03:47,400 --> 01:03:52,480 even if your septic is only good for three bedrooms, you've got two other rooms that have closets 567 01:03:52,480 --> 01:04:00,320 in the main porch and not in like the basement. Then we'll count those as bedrooms. To us, we're 568 01:04:00,320 --> 01:04:07,000 assessing what's there, not what you should legally be having or whatever the septic is good for. 569 01:04:07,140 --> 01:04:11,940 We'll assess whatever is there. We've seen a lot of people, they take a bedroom in the main home, 570 01:04:12,440 --> 01:04:16,700 they take the closet out, they make it in an office so that way they could have that other bedroom 571 01:04:16,700 --> 01:04:20,740 in the ADU, so it kind of just cancels each other out. 572 01:04:21,100 --> 01:04:23,340 So you might have to remove the closet. 573 01:04:24,060 --> 01:04:24,500 Yeah. 574 01:04:25,280 --> 01:04:26,160 For assessment. 575 01:04:26,340 --> 01:04:26,980 Yeah, for assessment. 576 01:04:27,300 --> 01:04:27,940 I mean, yeah. 577 01:04:28,200 --> 01:04:28,300 Yeah. 578 01:04:29,020 --> 01:04:29,600 Astros gone at. 579 01:04:29,820 --> 01:04:33,060 The health officer's going to be the one who, in conjunction 580 01:04:33,060 --> 01:04:35,620 with the bill and department and inspection services, 581 01:04:35,900 --> 01:04:40,160 they would make a determination of, you know, what constitutes 582 01:04:40,160 --> 01:04:43,100 the bedroom and whether or not this septic system can accommodate 583 01:04:43,100 --> 01:04:43,540 the load. 584 01:04:43,540 --> 01:04:51,360 Yeah, there's a lot of differences between building and assessing even the square footage factor of that is different where a building will go 585 01:04:51,360 --> 01:04:57,980 If you're not utilizing a finished space, I think they'll they'll take that out of the square footage. We just take it as a whole 586 01:04:58,660 --> 01:05:06,580 All of it. We don't differentiate that we differentiate as far as code score as far as if it's finished or not, but we just have an overall 587 01:05:08,100 --> 01:05:08,540 Area 588 01:05:18,820 --> 01:05:20,580 Does it come out and update a survey, or do they? 589 01:05:21,780 --> 01:05:22,720 It's a good question. 590 01:05:22,980 --> 01:05:28,240 I would tell you in the majority of cases with the detached units, we are requiring a survey. 591 01:05:29,380 --> 01:05:30,560 It's good practice. 592 01:05:30,660 --> 01:05:33,080 We understand that it adds project cost. 593 01:05:34,740 --> 01:05:38,480 But a lot of times we don't have, there's a lot of files where we don't have any information. 594 01:05:39,140 --> 01:05:41,100 So we use the best information we have. 595 01:05:41,420 --> 01:05:46,880 If you're on a five-acre lot in the rural district, you know, hey, we could probably work, you know, figure it out. 596 01:05:47,280 --> 01:05:50,520 But those aren't typically the properties that are coming in. 597 01:05:50,600 --> 01:05:54,220 They're typically in a lot of times a detached structure, right? 598 01:05:54,320 --> 01:05:58,560 So if it's an attached structure, and maybe you have a plot plan from, you know, 599 01:05:58,680 --> 01:06:02,780 there are early 90s, we could kind of reference that and say, yeah, you know, that could work. 600 01:06:03,940 --> 01:06:06,320 But the detached structures are a little harder to locate. 601 01:06:07,440 --> 01:06:13,440 And most instances, particularly detached, were requiring a survey attached, if, you know, 602 01:06:13,520 --> 01:06:15,740 their sensitivity to setbacks were requiring it. 603 01:06:15,740 --> 01:06:17,740 But we try to be reasonable about it. 604 01:06:20,870 --> 01:06:22,430 The bank said be able to do it in the plot plan. 605 01:06:23,130 --> 01:06:27,790 So if you're going to plot, then why would a member of the public have to pay for a second plot? 606 01:06:27,990 --> 01:06:28,650 And that doesn't make any sense. 607 01:06:28,650 --> 01:06:30,610 Well, maybe there could be some conjunction. 608 01:06:30,870 --> 01:06:33,850 We haven't worked with Mayor McCann, Valley Savings Bank yet. 609 01:06:33,990 --> 01:06:35,970 But maybe there could be some coordination between the two. 610 01:06:36,130 --> 01:06:39,730 Because what you often see in the files is a mortgage plot plan. 611 01:06:39,930 --> 01:06:41,130 Those were frequently done. 612 01:06:41,630 --> 01:06:44,490 And what's funny about those is it gives you a reference. 613 01:06:44,530 --> 01:06:46,630 But a lot of times there's a note on there if you look really close. 614 01:06:46,630 --> 01:06:50,310 and it says not for survey purposes, and it was really tied to the mortgage. 615 01:06:50,590 --> 01:06:53,370 So, those always make me a little uncomfortable, but you're right. 616 01:06:53,530 --> 01:06:54,650 We don't want her dumped in seed. 617 01:06:54,850 --> 01:06:57,870 So, I guess the idea would be that if you come in and the plan 618 01:06:57,870 --> 01:07:02,390 and division says, you need to do a survey, you know, hopefully maybe the idea 619 01:07:02,390 --> 01:07:06,330 that has been conveyed by Mayor Mack, and maybe they could work with their firm 620 01:07:06,330 --> 01:07:07,130 that you use. 621 01:07:07,230 --> 01:07:08,550 I don't know if that's your experience. 622 01:07:08,550 --> 01:07:13,930 I don't put my back on this, because a lot of money is before I 623 01:07:16,300 --> 01:07:17,620 just put up the $1 624 01:07:23,960 --> 01:07:24,400 ,000 625 01:07:24,400 --> 01:07:25,700 a certain certain survey. 626 01:07:26,340 --> 01:07:29,360 You're saying like a site specific survey for the ADU. 627 01:07:29,640 --> 01:07:34,200 I mean, I guess we wouldn't have them, and most instances they're located in the primary, 628 01:07:34,600 --> 01:07:39,280 but you know, my interest isn't the primary, our interest would be to make sure that the 629 01:07:39,280 --> 01:07:40,800 detached structure meets. 630 01:07:41,060 --> 01:07:46,640 So if they came in with a survey and they said the surveyors only located the detached ADU, 631 01:07:46,640 --> 01:07:48,560 So that would be okay with me. 632 01:07:49,600 --> 01:07:54,240 The sequence in this probably, the concern I would have here, if the bank is requiring 633 01:07:54,240 --> 01:08:00,180 at the end of the project, we could do that, but it would kind of be at risk of the applicant. 634 01:08:00,360 --> 01:08:07,620 So generally I say, consult with a surveyor in advance so that the property owner is aware, 635 01:08:07,860 --> 01:08:11,100 the contractors are aware, imagine the bank would want to be aware. 636 01:08:11,520 --> 01:08:15,040 And then often at the end we'd want to verify. 637 01:08:15,040 --> 01:08:37,380 Okay, you said that you have the area, you know, did everybody put it in the right spot because believe it, you're aware, we've run into it even the last year where you try to do your best, you know, you have a survey or come out, you get a proposed survey, and then they come with an as bill and, you know, you're scratching your head because how did you, you know, have it a foot into the setback. 638 01:08:38,280 --> 01:08:42,000 So that's kind of the idea. It's not to, you know, muddy the process. 639 01:08:42,000 --> 01:08:47,280 I think it's just to make sure that, you know, that the ordinance is applied appropriately, 640 01:08:47,680 --> 01:08:51,860 and it's equitable, because that's what I really struggle with sometimes is when I have those situations 641 01:08:51,860 --> 01:08:57,000 where maybe a survey might not be required, but then I have somebody over here where a survey is required, 642 01:08:57,300 --> 01:09:01,400 I try to be as fair as possible because I know it's an additional project cost. 643 01:09:02,740 --> 01:09:04,360 All right, we'll do one last question. 644 01:09:04,360 --> 01:09:11,280 I have two questions. One for the bank. I talked to you before. My daughter owns a property 645 01:09:11,280 --> 01:09:17,540 and the other five acres. And she wants me to build a tiny house on her property. 646 01:09:18,260 --> 01:09:27,080 But she, but another side street. So one question is would I have to take out the loan and finance it? 647 01:09:27,360 --> 01:09:31,360 Or would they because they own the property? Or can we do like a... 648 01:09:31,360 --> 01:09:36,560 What you would usually do on that case, they would add you to the deed and then you're 649 01:09:36,560 --> 01:09:41,780 able to add you on to the deed and at that point in time you would be able to take out 650 01:09:41,780 --> 01:09:42,440 financing on that. 651 01:09:42,580 --> 01:09:46,480 You would need to do that prior to applying for the loan and then if there's a separate 652 01:09:46,480 --> 01:09:50,780 street you would want to look at a driveway permit and whatever Peter Rose rules are within 653 01:09:50,780 --> 01:09:51,460 regards to that. 654 01:09:51,460 --> 01:09:56,100 But yes, yeah, my second question about tie-in and the water 655 01:09:57,040 --> 01:10:01,800 There it's going to be on a separate street. They won't be on the side of their property 656 01:10:02,420 --> 01:10:05,200 I think you do want to consult with 657 01:10:06,140 --> 01:10:11,040 Peterborough and see what they're in Salem. We'd want you to come in off your existence service 658 01:10:11,040 --> 01:10:12,500 But I don't know what Peterborough would want. 659 01:10:15,410 --> 01:10:15,870 Yes 660 01:10:17,630 --> 01:10:22,390 All right, thank you everyone for coming to our ADU seminar on our left 661 01:10:22,390 --> 01:10:26,950 We have some informational packets as well as beverages, it snacks over there. 662 01:10:28,110 --> 01:10:32,730 The panel will be up here to answer any final questions, and we thank you for your time. 663 01:10:32,950 --> 01:10:36,310 Thank you, and thank you to Mayor Mack, County Savings Bank for sponsoring this event.